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BUILDING NEIGHBORHOOD ECONOMIES FROM WITHIN. NDC 2014 ANNUAL REPORT NEIGHBORHOOD DEVELOPMENT CENTER OVERVIEW: NDC is a non-profit, community development financial institution that believes residents of low-income, inner city neighborhoods have entrepreneurial talent and energy that represent powerful assets available to help revitalize those communities. NDC provides entrepreneur training, small business lending (and Islamically acceptable financing), business services and real estate incubators that help our clients start and grow vital small businesses – which in turn create jobs, provide needed goods and services, revitalize blighted properties, create community gathering places, and develop community role models…building the economies of their neighborhoods from within. There are more than 500 alumni of NDC’s programs that have active businesses. These businesses have created over 2,285 jobs and return over $46 million annually to the economies of their own inner-city neighborhoods. According to a Wilder Study, 82% of our business owners with employees hire neighborhood residents. In 2014, 95% of our entrepreneurs in training are people of color, 51% are female and 43% are considered extremely low income. As economic disparities continue to increase, NDC has chosen a bottom up approach to building and maintaining communities by supporting small business owners. of our business owners hire neighborhood residents 82 %* of our entrepreneurs in training are people of color and 43 % are considered extremely low income 95 % 60 %* of our businesses occupy a building that was formally vacant. OUR EFFECT ON THE COMMUNITY IN 2014 WHAT MAKES NDC ONE OF A KIND? FINANCIAL STATEMENTS STATEMENT OF FINANCIAL POSITION (DECEMBER 31, 2014) STATEMENT OF ACTIVITIES (DECEMBER 31, 2014) REVENUE & SUPPORT EXPENSES FUNDERS Allianz Life Insurance Company of N. America The Victor & Christine Anthony Family Foundation The Bank of America Charitable Foundation, Inc. Central Corridor Funders Collaborative Deluxe Corporation Foundation The Jaye F. and Betty F. Dyer Foundation F.R. Bigelow Foundation The Fredrikson & Byron Foundation Hardenbergh Foundation Knight Foundation Marbrook Foundation Marquette Financial Companies The McKnight Foundation The Minneapolis Foundation Northwest Area Foundation Otto Bremer Foundation Jay and Rose Phillips Family Foundation The Saint Paul Foundation Securian Foundation Emil J. and Emily D. Slowinski Fund of The Saint Paul Foundation Travelers Foundation Trillium Family Foundation Twin Cities Local Initiatives Support Corporation U.S. Bancorp Foundation Valspar Foundation Wells Fargo Foundation - Minnesota Western Bank KEY GOVERNMENTAL PARTNERS City of Minneapolis – Department of Community Planning and Economic Development City of St. Paul – Department of Planning and Economic Development Hennepin County Library Rondo Community Outreach Library Small Business Administration St. Paul Port Authority State of Minnesota – Department of Employment and Economic Development Lending partners African Development Center African Economic Development Solutions American Indian Economic Development Fund City of Minneapolis City of Saint Paul Latino Economic Development Center Metropolitan Consortium of Community Developers Metropolitan Economic Development Association Minnesota Black Chamber of Commerce Women Venture Real estate partners Aurora Saint Anthony Neighborhood Development Corporation (University & Dale) Cooperativa del Mercado Central (Mercado Central) East Side Neighborhood Development Company (Swedish Bank) Episcopal Homes (University & Dale) Greater Frogtown Community Development Corporation (University & Dale) In the Heart of the Beast Theatre (Plaza Verde) Latino Economic Development Center (Plaza Verde) Model Cities of Saint Paul (University & Dale) Powderhorn Phillips Cultural Wellness Center (Midtown Global Market) Project for Pride in Living (Mercado Central) Whittier Community Development Corporation (Mercado Central) Community Development Financial Institution Fund U.S.Small Business Administration Minneapolis Department of Employment and Economic Development City of Minneapolis City of Saint Paul Hennepin County Minneapolis Empowerement Zone Rondo Community Outreach Library Office of Community Services State of Minnesota TRAINING PARTNERS African Career, Education & Resource, Inc. African Community Services African Economic Development Solutions Aurora Saint Anthony Neighborhood Development Corporation Bii Gii Wiin Community Development Fund Blake Road Corridor Collaborative City of Saint Paul Dayton’s Bluff Community Council Emerge Community Development Hamline Midway Coalition Hmong American Mutual Assistance Association, Inc. Hope Community Neighborhood Development Alliance New American Academy North Hennepin Community College Northside Economic Opportunity Network CORPORATE AND FOUNDATION Allina Health System Deluxe Corporation Foundation Fredrikson and Byron Foundation F.R. Bigelow Foundation Goerge Family Foundation Local Initiative Support Corporation Living Cities/The Integeration Initiative Hardenbergh Foundation Heron Foundation Marbrook Foundation The Marquette Financial Companies Minneapolis Foundation Otto Bremer Foundation Allianz Life Insurance Company of N. America Nexus Community Partners Northwest Area Foundation Northmarq Capital Piper Jaffray & Cos Pohlad Family Foundation Securian Foundation Simikis Foundation Trillium Family Foundation The Jay & Rose Phillips Family Foundation The Jaye F. and Betty F. Dyer Foundation The Mcknight Foundation John S. and James L. Knight Foundation THE Emily J. & Emily D. Slowinski Fund The Saint Paul Foundation Travelers Foundation US Bancorp Foundation University of ST. Thomas Valspar Foundation Wells Fargo Foundation of Minnesota Wells Fargo Bank Western Bank Metropolitan Transportation Network, Inc. INDIVIDUAL DONORS Jeffrey Alexander Catherine Allan Frank Altman Brian Alton Wade Anderson Felix K Ankel Wendy Annis Anonymous Dean Bachmeier Mary Kay Bailey James Baillie Terri Banaszewski Joan Barnes Kate Barr Elizabeth Beck John Bennett Jeff Benson Glenn Bergman Daniel Birru Kathy Bjerke Emily Blodgett Jeff Blodgett Lisa Boyd Lance Brock Ellen Brown Kari Canfield Cynthia Carlson Cicely Carr Julie Causey Denise Chambers Michael Christenson Cathy Connett Ingrid Culp Greg and Janice Dames Mike Derus Michael Dickson Dean Dziasek Cristina Edelstein Paul Engh Steve Erdall Dwayne Etheridge Paul Fate Michael Finkelstein Terri Fleming Dan Flicek Jamil Ford Barbara Louise Forster Margo Geffen John Gelderman Becky George Steve Gibson Joshua Glenn & Susan E Roe Ben Goldfarb Manuel Gonzalez Kevin Goodno Michael Angelo Goze Douglas Gregory Cay Shea Hellervick Lindsay Herbert Rick Heydinger JoAnna Hicks Beth and Jeff Hvass Judy Jandro Nick Jellum Steven Johnson Tadd Johnson Brian Kamin Tim Keenan John Kimball Omer Kissi Michou Kokodoko John Koneck Marc Kotsonas Brett Kramer Joseph D. Krueger James W. & Gail O. LaFave Mike LaFave Laurie LaFontaine Liz Lambrecht Becky Landon Dan Le Tony Lemaire Earlsworth (Baba) Letang Connie Lewis Julian Loscalzo Lorrie Louder Rodney & Nancy Maeker Bridget Manahan Bonnie Marshall Mary Mathews Maureen Michalski Lisa Middag Maren Misner Juliet Mitchell Mike Monson Nneka Morgan Kathy Moriarty Ann Mulholland Ellen Muller Eric Muschler Rosemarie K. Ndupuechi Andrew Nelson John Neuchterlein Lisa Nicholson Kim Norberg Sandra Oakes Cheryl O’Donnell Soon-Young Oh Amy O’Neil Marcus Owens Oyeronke Oyinloye Ed Padilla Cheryl Paullin Trung M Pham Leila Poullada Dennis Prchal Steve Quam Ben Rasmussen Paul Rebholz Dan Rickett John Ries Joseph Ring Carolyn H Roby Barbara Roy Bonnie Russ Samir Saikali Dean Sanberg A. William Sands Greg Sands Robert Sands John Satorius Jessica Savran Mike Scheisman Jon Schumacher David Scott Vicki Shipley Patrick Sievert Brian D Singer Freweini Sium Michael Smith Pat Smith Gordon M. & Doloresi I. Sprenger Joyce L Starks Bill Svrluga Juliana Tanning Mihailo Temali Matthew Thompson Maria Totozintle Ebisso Uka Haiyen Vang Neeson Vang Senssue Vang Joan & Segundo Velasquez Andrew Vomhof Teshite Wako Kevin Walsh Pamela Wandzel Phil Waugh Ben Webster Stephen Wellington Steve Wellvang Anne White David Wiese Michele Willard Treston Wold Noya Woodrich Elaine Wyatt STAFF: Jeff Alexander, Director of Real Estate Darrell Beauford, Real Estate Accounting Manager Daniel Birru, Accountant Cicely Carr, Training Administrator Isabel Chanslor, Director of NDC Business Lab Sarah Emmel, Loan Fund Administrator Denise Favors, Senior SBA Loan & Business Development Officer Elizabeth (Becky) George, Cultural Events and Property Manager Harvey Hoffman, Building Operations Manager Ben Johnson, Real Estate Project Developer Ryan Kidder, Lead Graphic Designer Mike LaFave, Vice President & Chief Operating Officer Earlsworth Baba Letang, Market Manager Mary Kuria, Client Manager & Business Advisor Perla Mayo, Loan Officer & Business Advisor Soon-Young Oh, Communications & Development Officer Phillip Porter, Loan Officer & Business Advisor Samir Saikali, Manager of Grants & Data Brian Singer, Director of Lending Emma Spillman, Training Coordinator & Office Manager Mihailo Temali, Founder & Chief Executive Officer Bee Vang, Loan Officer & Business Advisor Teshite Wako, Chief Financial Officer BOARD OF DIRECTORS: Arvid Povilaitis - Board Secretary, Chief Operating Officer, Meritex Enterprises, Inc. Asad Aliweyd, Executive Director, New American Academy Dennis Prchal, President, Western Insurance Agency Douglas Gregory ,Regional Vice President, The Travelers Companies, Inc. Ed Padilla - Board Vice Chair, President & CEO, NorthMarq Capital Grover Jones - Board Vice Chair, Executive Director, Northside Economic Opportunity Network (NEON) Haiyen Vang, Small business owner, The Clearance Rack Jim Graves, CEO-Chairman, Graves Hospitality Leigh-Erin Irons, Shareholder, Fredrikson & Byron, P .A. Long X. Yang, Executive Director, Hmong American Mutual Assistance Margo Geffen, Manager, Housing Development and Finance at Hennepin County Public Works Mary Mathews, Small business owner Muffie Gabler, Senior Vice President - Central Region Community Development, Wells Fargo Noya Woodrich, President & CEO, Minneapolis Council of Churches Patti Tototzintle, CEO, Casa de Esperanza Steve Gibson - Board Chair, Senior Vice President, US Bank Terri Fleming, Senior Vice President, Western Bank Vivienne Williamson - Board Vice Chair, Small business owner, Mighty Stitch, LLC Community Advisors: Repa Mekha, Executive Director, NEXUS Community Partners Tony Genia, Community Liaison Wafiq Fannoun, Executive Director, Islamic University of Minnesota William Sands, Retired Chairman, Western Bank *2013 Wilder Research Evaluation; Research is Conducted Every Two Years. ASSETS Cash and Cash Equivalents $ 853,768 Restricted Cash $ 2,249,178 Contributions receivable $ 50,000 Other receivables $ 253,647 Prepaid expenses $ 47,259 Loan receivables, Net of allowance for loan losses $ 3,560,516 Rental Properties and Equipment, Net $ 4,430,670 Property and Equipment, Net $ 17,310 Financing Fees, Net $ 23,762 Investment in Other Companies $ 81,998 Deposit $ 20,872 TOTAL ASSETS $ 11,588,980 LIABILITIES AND NET ASSETS LIABILITES Payables and other accruals $ 1,004,682 Loans Payable $ 8,888,091 TOTAL LIABILITES $ 9,892,772 NET ASSETS Unrestricted net assets $ 646,208 Temporarily restricted net assets $ 1,050,000 TOTAL NET ASSETS $ 1,696,208 TOTAL LIABILITES AND NET ASSETS $ 11,588,980 1 Grants and Contributions $ 972,442 2 Earned Income $ 998,320 3 Governemnt Revenue $ 1,308,777 TOTAL REVENUE AND SUPPORT $ 3,279,539 1 Microenterpreneur Training $ 424,674 2 Technical Assistance $ 624,518 3 Lending $ 431,665 4 Incubators Program $ 619,638 5 Management and General $ 519,688 6 Fund Raising $ 92,452 TOTAL EXPENSES $ 2,712,635 50 % 1 2 3 30 % 30 % 19 % 16 % 23 % 16 % 23 % 3 % 1 2 3 4 5 6 FUNDERS ASSET-FOCUSED NDC starts with the belief that all people have assets and talents and the ability to contribute to a vibrant community. CULTURALLY COMPETENT NDC has a talented, diverse staff allowing it to effectively serve and communicate with a broad spectrum of clients with competence and sensitivity. Our work is primarily focused on low income, communities of color. PLACE BASED NDC employs a comprehensive approach to neighborhood revitalization that is deliberate about concentrating on entrepreneurs in specific geographic areas, which breathes life into visible properties in the community. PARTNER DRIVEN NDC’s commitment to working with community partners enhances our services and helps us to better support our businesses long term. We work with a variety of community, business and ethnic/cultural organizations to find and support entrepreneurs and business owners, and link their success to the revitalization of their own neighborhoods. COMPREHENSIVE NDC supports entrepreneurs and neighborhoods long term by providing wrap around services throughout the life cycle of a business. LOANS DURING 2014, NDC APPROVED 63 LOANS TOTALING $ 2.8 MILLION TO SMALL BUSINESSES IN OUR TARGET NEIGHBORHOODS (UNIVERSITY AVE. ST. PAUL, EAST SIDE-ST. PAUL, LAKE ST.-MINNEAPOLIS, NORTH MINNEAPOLIS) ENTREPRENEUR TRAINING DURING 2014, NDC AND ITS NEIGHBORHOOD PARTNERS OFFERED 21 ENTREPRENEUR TRAINING CLASSES TO OF WHICH 257 ENROLLED ASPIRING ENTREPRENEURS 231 COMPLETED THE TRAINING NDC ALSO OFFERED FREE WORKSHOPS THAT WERE ATTENDED BY 278 BUSINESSES. BUSINESS SERVICES IN 2014, NDC PROVIDED (BOOKKEEPING, MARKETING, BRANDING, LEGAL COUNSELING, ETC.) 6,000 + HOURS OF TECHNICAL ASSISTANCE 328 BUSINESSES IN HIGH-NEED TARGET NEIGHBORHOODS TO REAL ESTATE DEVELOPMENT NDC ASSISTED BUSINESSES ARE LOCATED IN AN NDC-OWNED INCUBATOR LOCATION (NDC HAS 7 INCUBATOR LOCATIONS).
